Report on Insurance Business in Bangladesh

Report

On

Insurance Business in Bangladesh

 

 

Submitted To:

Mashiat Zahin

Lecturer

Department of Marketing

  

Submitted By:

                                      Name Md. Tushar Islam.

                                      Id      : 11907027

                                      Batch: 13^th

                                                  

Date of Submission: 11 November 2020

Comilla University

 

 

TABLE OF CONTENT

SL No.	Topic Name	Page No.
Chapter-1	Introductory Part
1.1	Introduction	1.
1.1-1	Objective	1.
1.1-2	Scope	1.
1.1-3	Limitations	1.
Chapter-2	Meghna Life Insurance
2.1	Company Profile	2.
2.2	Business Functions	3.
2.3	Premium Calculate	8.
2.4	Premium Payment	8.
2.5	Claim	8.
2.6	Service Condition	8.
Chapter-3	Delta Life Insurance
3.1	Company Profile	9.
3.2	Business Functions	10.
3.3	Premium Calculate	11.
3.4	Premium Payment	11.
3.5	Claim	11.
Chapter-4	Pragati Fire Insurance
4.1	Company Profile	12.
4.2	Business Functions	12.
4.3	Premium Calculate	14.
4.4	Premium Payment	14.
4.5	Claim	14.
4.6	Service condition	14.
Chapter-5	Green-Delta Marine Insurance
5.1	Company Profile	15.
5.2	Business Functions	15.
5.3	Calculating the premium	17.
5.4	Premium Payment	17.
5.5	Claim Settlement	18.
5.6	Conclusion	18.

 

 

 

 

 

 

 

 

Introduction

Insurance can be defined in a number of ways. Insurance is a legal contract between two parties- the insurance company (insurer) and the individual (insured), wherein the insurance company promises to compensate for financial losses due to insured contingencies in return for the premiums paid by the insured individual.

In this report, I focus 4 insurance businesses in Bangladesh. These are- Meghna life insurance, Delta life insurance, Pragati fire insurance, and United marine insurance company ltd. I also focus on these company’s business functions including, what types of insurances they offer, the company’s policies, payment method, premium calculating, and so on. 

The objective of the Study

Broad Objective: Broad objective of this report is to acquire knowledge about the insurance industry of Bangladesh.

Specific Objective:

The report is presented about four insurance companies. The first company is Meghna life insurance. The second is Delta life insurance. The third is Pragati fire insurance and the fourth is Pioneer marine insurance.

To know about their policies.

To know about their vision, mission, and core goal.

To know about the calculation of premiums.

To know about the payment premium.

To find out the relevance and application of theoretical knowledge in practical life.

To gain in-depth knowledge about this company.

Scope

After reading In this report, the reader will be able to describe the four insurance company’s objectives, policies, how they calculate their premium, payment system, claim settlement. Besides, to gain knowledge about insurance companies it will be very helpful.

Limitations

In preparing this report, I was highly dependent on the information published in Annual Reports, different journals, and prospectus of these companies. The report is based on secondary data. There is no source of primary data. Due to other courses’ pressure, I could not gather all information.

Meghna Life Insurance

Historical Background

 

In the ninetieth decade some enthusiastic Bangladeshi professionals along with some others of similar state of mind dreamed of establishing a Life Insurance Company in order to participate in the financial activities of the country such as reduction of unemployment, alleviation of poverty and to contribute to the nation for the upliftment of a lot of common people. Eventually due to ceaseless efforts and the courageous initiative of the Chairman and some other entrepreneurs, Meghna Life Insurance Co. Ltd. emerged in 1996.

The authorized capital of the company is Tk. 60 crores and paid-up capital at present stands at Tk. 23.0343 crore. In 1996 Premium income, Life Fund & Investment was Tk. 3.30 crore, Tk. 0.04 crore & Tk. 2.59 crore respectively and in 2012 such Premium income, Life Fund & Investment increased to Tk. 400.41 crore, Tk. 1047.14 crore & Tk. 803.06 crore respectively.

From 1996 to 2012 Meghna Life paid 48.38 crore taka as a death claim, taka 246.47 crores as survival benefit, taka 107.37 crore as maturity claims and taka 31.48 crores as bonus to the policy holders. This success has been possible due to constant guidance supervision and ceaseless efforts of the Honorable Chairman and Directors and the present competent management.

It soon made a mark in the Life Insurance arena by not only being the top listed among the Private sector indigenous companies but by undertaking and successfully implementing innovative and welfare-oriented Life Insurance schemes. It introduced an array of conventional Life and other Insurance products of Loko Bima, Islami Bima (Takaful), Swanirvor Bima and Islami Khudra Bima (Takaful) many of which were the first in Bangladesh. For the first time Hospitalization, benefit Insurance product was also introduced by Meghna Life.

Meghna Life has earned a reputation in every corner of the insurance Industry. It can take pride in its prestigious achievements which are molded with transparency, accountability, impeccable working capacity, sincerity, honesty, and sagacity.

The company has diversified its products to match customer’s needs and satisfaction. Currently, it provides multifarious Life Insurance products to cater to the aspirations & needs as well as religious beliefs of the clients. There is no iota of doubt that Meghna's life will go forward with its new missions and visions in the days to come.

The objective of Meghna Life Insurance

The main object of Meghna Life was to provide maximum financial security to a person and families by giving modern Insurance facilities. Its other objectives are to turn it into a profitable savings institution through the payment of bonus at an attractive rate and enriched servicing and invest the accumulated small savings in the nation-building various welfare and profitable projects.

Business Functions

Meghna Life Insurance Company Ltd. has introduced innovative and attractive policies with a view to attracting different class of people in the country. At present Meghna Life Insurance Company is offering the following policies in other 6 (Six) different categories:

      Ordinary Life (Ekok Bima)

      Group Insurance

      Loko Bima

      Islami Bima (Takaful)

      Islami Khudra Bima (Takaful)

      Swanirvar Bima

Ordinary Life (Ekok Bima): Meghna Life offers a wide variety of ordinary life product/plans ranging from the most common endowment type to more modern and sophisticated plans like endowment with open term, pension plan, child protection plan, etc. and the aim of increasing pension, increasing protection with provision for premium refund etc. The plans have been designed keeping in view the diverse and multifaceted needs of the insuring public belonging to different strata of the Society

The followings are the Plans of Ordinary Life: (Ekok Bima)

Sl	Schemes
1	Endowment Insurance Plan - with Profits
2	3 (three) Payment Insurance Plan - with Profits
3	Biennial Endowment Insurance - with Profits
4	Child Protection Endowment Insurance - with Profits
5	Insurance Cum Pension Plan - without Profits
6	Single Premium Guaranteed Benefit Plan - without Profits
7	Education Expense Insurance Plan - with Profits
8	Premium Back Term Insurance - without Profits
9	Islami Endowment Plan - with Profits
10	Islami Biennial Payment Assurance Plan - with Profits
11	Islami 5 (five) Instalment Insurance Plan - with Profits
12	Meghna Life DPI - with Profits

 

Group Insurance: This scheme has been designed to make the officials and employees of Meghna Life Insurance Co. Ltd. free from tension and financial hardship. With a very small premium, very large amount of Sum-assured may be taken with regard to the risk of accident and premature death. The arrangement of Group Insurance may be made if at least 10 members are there. In case of group term Insurance there may be 5 members. Premium normally be paid on annual basis. The premium of this insurance may be paid fully or partially by the employees and the employers.

Loko Bima: Loko Bima Project was emerged on 13th June 1998. The aim and object of Loko Bima Project is to arouse 90%. People of the country towards savings and to make them conscious and self-reliant through Insurance. This project plays a very important role in solving social problems of a large number of people by reduction of unemployment, population control, development of cottage Industry, rural development so to say social backwardness etc. The following are the plans of Loko Bima:

Sl	Schemes
1	Endowment Insurance plan - with Profits.
2	Child protection Endowment Insurance - with Profits
3	Meghna deposit Premium scheme - with Profits
4	Single Premium Insurance - with Profits.

 

Islami Bima (Takaful): The aim and object of Islami Bima (Takaful) is to provide more financial security of the mass people of this country through this project. This project was introduced to turn Life Insurance into a profitable savings arrangement through payment by installments on the basis of Islami Shariah and transparent and impeccable servicing.

The followings are the Plans of Islami Bima (Takaful):

Sl	Schemes
1	Islamic Endowment Insurance Plan (Takaful) - with Profit
2	Islami Takaful 3 (three) Payment Insurance Plan - with Profits
3	Islami Bima (Takaful) Biennial Endowment Insurance Plan - with Profits
4	Islami Bima (Takaful) Child Protection Endowment Insurance Plan - with Profits
5	Islami Bima (Takaful) Insurance-Cum Pension Plan - without Profits
6	Islami Bima (Takaful) Single Premium Guaranteed Benefit Plan - without Profit
7	Islami Bima (Takaful) Education Expense Insurance Plan - with Profits
8	Islami Bima (Takaful) Premium Back Term Insurance - without Profits
9	Islamic Endowment Plan (Takaful) - with Profits
10	Islamic Biennial Payment Assurance (Takaful) Plan - with Profits
11	Islami 5 (five) Instalment Insurance Plan - with Profits
12	Takaful Islami DPI - with Profits

 

The project is conformed with a Shariah Council comprising 15 (Fifteen) members.

Islami Khudra Bima (Takaful): The object of Islami Khudra Bima (Takaful) is to create habit of savings for the low-income group of people of Bangladesh, ensure profit and savings through modern Insurance facilities and to introduce interest free Islami Bima. These are the following plans-

Sl	Schemes
1	Endowment Insurance - with Profits
2	Child Protection Endowment Insurance - with Profits
3	Single Premium Guaranteed Insurance - with Profits
4	Islami Khudra DPS - with Profits

 

Supplementary Hospitalization Insurance Benefit: Those who are within the age of 18 to 55 years, they take this Insurance with the principal policy.

Advantages available in the Hospital-

v  Staying in the private room

v  Doctor’s consultation fees

v  Diagnosis expenses

v  Surgical operation expenses

v  Medicine

v  Relevant services expenses

The special characteristic of the scheme:

v  This advantage may be taken for wife and children of the policyholder.

v  Very less premium

v  Any medical facility is available at home and abroad.

v  Facilities of any Govt. hospital or any other private hospital with 50 beds may be available.

v  Medical treatment expenses in any extraneous hospitalization will be borne in Bangladeshi currency

v  Consultation of doctors may be taken with one’s own choice

v  Rebate of tax is available.

Rules of payment of medical bill of the Hospital-

The company will directly make payment of the Hospital bills subject to admission in the Hospital approved by the company.

Re-imbursement: If the policyholder himself bears expenses on approved treatment from the Hospital which has no contract with the company, in that case the company will reimburse Hospital bills. But in these cases, all the vouchers and papers shall be deposited within 30 days after release from Hospital and the company will arrange reimbursement of those after due scrutiny.

Supplementary Dread Disease Benefit (DDB 50%, 25%)

Disease and old age complicacy are indissolubly linked with human lives. Men can, at any time be attacked with serious disease and they may not be capable to have proper treatment immediately. In this connection, Meghna Life can provide money for treatment of such fatal diseases by DDB. Whatever Sum-assured may be, the supplementary Insurance cannot exceed 10 lakhs as facility.

If the policyholder is attacked with any of the following disease, 25% of the Sum-assured be paid immediately:

1.      Heart attack

2.      Stroke

3.      Coronary Ordinary Surgery

4.      Kidney Failure

5.      Multiple Sclerosis

6.      Paralysis.

Supplementary Accidental Death Benefit (ADB): This supplementary Insurance may be taken adjoining the Endowment Assurance, Whole Life Assurance, Term Assurance, Group Insurance or pension scheme. ADB is normally given as supplementary cover with the Principal Insurance policy. The advantages of taking ADB as supplementary cover with any Life Insurance policy is that if any policyholder dies due to accident the nominee of the insured will be provided with an amount equivalent to the Sum-assured within 90 days. The rate of premium is low in this Insurance as a result the Insured can take this policy as supplementary Insurance on nominal condition.

Supplementary Permanent Disability and Accident Benefit (PDAB): PDAB policy can be taken for death or disability by physical hurt due to accident. In case of death the nominee of the Insured will get an additional amount equivalent to principal Sum-assured. An amount equivalent to the Sum-assured is also paid to the nominee of the policyholder instantly if both hands or both legs or both the eyes or one hand and one leg are lost. In case of fully and permanent disability, the policyholder will be given 10% of the principal Sum-assured for next 10 years since the happening of accident as yearly allowance. In case of one leg or one hand and an eye are lost, the policyholder will be given 50% of the Sum-assured instantly. At the maturity, the full Sum-assured is paid.

Calculating the Premium

In their website, there is a premium calculator. By this calculator, anyone can select their plan, give their age, term, stipend term and yearly stipend amount. After completing these, if he or she push to the calculator button he or she might see the amount of money that Meghna Life insurance company will give him/her after date of maturity. Besides, anyone can communicate with Meghna insurance company to determine their plans and premium.

Premium Payment

There are several ways by which their valued policy holders can pay their premium. They have 10 customer service centers countrywide. At 250+ zonal offices of Meghna Life Insurance countrywide and also head office. Policy holder can also depots their premium directly at Meghna Life Insurance bank account at any branches of Pubali Bank, Trust Bank, Mercantile Bank or SouthEast Bank. To make premium policy holder can use mobile banking like rocket (Dutch-Bangla Bank), TeleCash (South East Bank), TCash (Trust Bank).

Claim

Policy holder can receive their money from their favorable banks. For receiving their money, they have to give bank statement to the insurance company and they will transfer their money to their favorable banks so that they can receive their money.  

Service Condition

An employee is expected to work for 40 hours each week usually in five (5) days. Support staff like Clerks, MLSS is expected to work on any day of the week at any time and are not eligible for overtime payments. An officer is not also eligible for overtime payments. The working days are Saturday to Thursday. Public holidays are announced at the beginning of the calendar year. All staff members show maximum courtesy and consideration to their colleagues’ and superiors. Collegial relations are maintained in office. Misconduct will entail disciplinary action. The business of Meghna Life Insurance Co. Ltd. is expected to be conducted expeditiously, timely, and without unfair activity. Any failing is treated as inefficiency or misconduct.

Delta Life Insurance

Historical background:

 

December 17, 1986. The journey of Delta Life Insurance Company began. Since then, it is only a forward march. The company emerged under the prudent leadership of its founder Chairman and Managing Director Late Shafat Ahmed Chowdhury, Actuary, as the government permitted the operation of insurance business in private sector in the mid-1980s. A professional management team is working hard under the leadership of Ms. Adeeba Rahman ACII(UK), Chief Executive Officer to ensure a steady pace of growth for the company.

Vision

      We will be the premier life insurance company in Bangladesh

      We will serve our customers with respect and will provide the best solution for their needs.

      We will be a Company with qualified professionals who will work together as a team and serve with dignity and the highest level of integrity.

      We believe in excellence and will continuously improve our service and will obtain the loyalty of our customers with service beyond their expectations.

      Adding Value" will be the operative words of our organization.

Goal

v  Provide financial security to our customers with insurance policies that are most suitable for them.

v  Make life insurance an easy saving instrument and a profitable one with attractive bonus and improved customer service.

v  Collect small savings from the people of our country and invest the accumulated savings in profitable nation building enterprises.

Mission

The avowed mission of the company was to bring the advantages of insurance to the home of the masses and to establish it as a safe and lucrative means of investment. In line with the above, Delta Life started its activities and has been able to obtain trust and confidence of hundreds and thousands of people.

Business Functions

Delta Life extended its operation through a combination of traditional and innovative life policies. Apart from Ordinary Life, Group and Health Insurance, Gono-Grameen Bima is an immensely popular scheme among rural folk. This is to be noted that Delta Life introduced micro insurance scheme for the first time in Bangladesh; while its operation has set an example of its kind. Gono-Grameen Bima is highly admired both at home and abroad and has opened a new vista in the realm of life insurance. Also, it has played a crucial role in popularizing insurance in Bangladesh.

Delta Life provides different types of insurance services through its array of products catering to the need of people belonging to different strata of the society. These are-

Ø  Ordinary Life Insurance

Ø  Gono-Grameen Bima

Ø  Group Insurance

Ø  Health Insurance

Ø  Overseas Mediclaim Insurance

Ordinary Life Insurance: Delta Life offers diverse ordinary life insurance schemes in accordance with the need of dissimilar people. Their insurance policies have more flexibility in terms of coverage, term, payment mode, supplementary policies, allowing the policyholder to choose the coverage they want. They are providing excellent world class services through their 28 Servicing Cell/Centre and 206 Agency Offices all over Bangladesh. Approximately 8000 development officers are at customer’s door step to give them best solution. They offer different type of endowment plan.

Gono-Grameen Bima: Delta Life is the pioneer in Micro-Insurance in Bangladesh. Delta life started Micro-Insurance in 1988 through Grameen Bima project. The objective was to bring the low-income people who comprise the larger portion of the society under the umbrella of insurance and create a habit of regular savings through insurance. With the products of Gono-Grameen Bima, Delta life is ensuring socio-economic protection to the low-income people for the last 30 years. There are monthly, quarterly, single premium, endowment insurance plan with profit etc.

Group life Insurance:  Group Life Insurance is the most cost-effective way of providing immediate financial support to the insured employee of an organization and/or his family members in the catastrophic event of death. There are schemes under Group Life Insurance where there is provision of premium refund or payment of sum assured on retirement or maturity, in addition to death risk coverage. It provides a financial safety net to employees and their families. Knowing they can benefit from such coverage is reassuring for both the employers and their employees.

Calculating the Premium

In their website, there is a premium calculator. By this calculator, anyone can select their plan, give their age, term, stipend term and yearly stipend amount. After completing these, if he or she push to the calculator button he or she might see the amount of money that Delta Life insurance company will give him/her after date of maturity. Besides, anyone can communicate with Delta Insurance company to determine their plans and premium.

Premium Payment

There are several ways by which their valued policy holders can pay their premium. They have 28 customer service centers countrywide. At 206 zonal offices of Delta Life Insurance countrywide and also head office. Policy holder can also depots their premium directly at Delta Life Insurance bank account at any branches of Pubali Bank, Trust Bank, Mercantile Bank or SouthEast Bank. To make premium policy holder can use mobile banking like rocket (Dutch-Bangla Bank), TeleCash (South East Bank), TCash (Trust Bank).

Claim

Claim settlement differ according the selected plans. Within selected term if insured person passes away then his/her nominee will get this money. If he lives within this period, he will receive his money. Policy holder can receive their money from their favorable banks. For receiving their money, they have to give bank statement to the insurance company and they will transfer their money to their favorable banks so that they can receive their money.

 

 

Pragati fire insurance

Company Background

Pragati Insurance Limited (PIL) is a leading private non-life insurance company in Bangladesh. It was established in 1986 by a group of young Bangladeshi entrepreneurs who had earlier launched a Commercial Bank in the private sector also. The Sponsors include Shipping Magnates, Engineers, Road Builders and Top Garment Industrialists aid-up capital of the company is Tk. 655.90 million and Reserves stood at Tk.2,664.71 million thus making an equity base of Tk.3,320.62 million as of December 2019. Total Asset as of 31st December, 2019 stood at over Tk.4,672.44 million.

Vision

Their vision to be the non-life insurance industry in the country by way of providing expeditious and conduct motivated by a value system that promotes integrity, performance and personal growth, and to maintain our leading edge in the industry by striving to boost their financial strength and profitability.

Mission

Their mission is to provide innovative and cost-effective non-life insurance solutions to their clients and an acceptable return of their shareholders through committed and professional at staff.

Business Functions

PIL, with its strong capital base and reinsurance partnerships with highly rated national and global Re-insurers, enjoys a competitive edge in the insurance industry due its strong assets, huge reserves, a balanced portfolio mix, steady growth in gross premium and continuous increase in share price at the stock market. The company offers a complete range of general insurance products and services in-

      Fire Insurance

      Motor Insurance

      Health & Accident Insurance

      Marine Insurance

      Aviation Insurance

      Miscellaneous Insurance

      Aviation Insurance

      All Risks Insurance

Fire Insurance

Standard Fire Insurance Policy

Description of Fire Insurance Business:

Fire Insurance: All policies issued under the heading of Fire Insurance. It primarily aims at providing protection against financial losses arising out of the operation of fire or certain other specified perils. The subject matter of insurance is usually:

      Building

      Plant & Machinery

      Furniture, fixture and fittings

      Goods and Merchandise

      Stocks of all kinds

Direct risks covered under standard fire insurance policy:

Accidental fire, lightning & Explosion (Boilers or gas used for domestic purposes only). The perils covered by the policy in its normal terms are-

v  Fire: Whether resulting from explosion or otherwise.

v  Lightning: Whether fire results or not.

v  Explosion: Boiler used or gas used for domestic purpose only.

In addition to the above, this Policy also generally covers the following forms of damage:

1.      Damage during or immediately following a fire caused by

Ø  Smoke

Ø  Scorching

Ø  Falling walls and the like

2.      Damage caused by a fire brigade or other competent authority in discharge of their duty including:

Ø  Damage caused by water or other extinguishing agents employed.

Ø  Damage caused by the blowing up of buildings to prevent the spread of a configuration.

3.      Damage to property while being removed from a building or immediately after its removal from burning building caused by exposure to weather, provided the removal was justified.

·         Riot and strike damage (RSD)

·         Explosion damage (including commercial purpose)

·         Malicious damage.

·         Earthquake

Calculating the Premium

In their website, there is a premium calculator. By this calculator, anyone can select their plan, give their age, term, stipend term and yearly stipend amount. After completing these, if he or she push to the calculator button he or she might see the amount of money that Pragati fire insurance company will give him/her after date of maturity. Besides, anyone can communicate with Delta Insurance company to determine their plans and premium.

Premium Payment

In every division of Bangladesh there are branches of Pragati life insurance. By which any policy holder can make their payment. 

They have 62 zonal offices countrywide and also head office. Policy holder can also depots their premium directly at Pragati insurance bank account at any branches of Pubali Bank, Trust Bank, Mercantile Bank or Southeast Bank. To make premium policy holder can use mobile banking like EFT Debit, rocket (Dutch-Bangla Bank), bkash (Brac bank), bank Asia banking agent. They can also use online payment gateway.

Claim Settlement

Client Excellent Service and Prompt Settlement of claim are the key to the success and growth of the company. Claims are settled immediately on completion of the required formalities by the insured and the surveyors. The company has settled claim (Gross) during the year 2019 Tk. 263.38 million. Policy holder can receive their money from their favorable banks. For receiving their money, they have to give bank statement to the insurance company and they will transfer their money to their favorable banks so that they can receive their money.

 

Service Condition:

Their service condition is well. Customers are satisfied to their service. They earned “AAA” in the credit rating-2018 and international ARCH award-2012.

 

Green Delta Marine Insurance

Company Profile

Green Delta Insurance Company Limited (GDIC) is the largest and pioneering general insurance company in Bangladesh. GDIC was incorporated in December 14, 1985 as a public limited company, under the Companies’ Act 1913 and its operation commenced on 1st January 1986, with a paid-up capital of BDT 30.00 million. Now, Green Delta Insurance Company Ltd. has amassed more than BDT 887 million with the highest credit rating of AAA (long term) and ST1 (short term) as the first Insurance Company in Bangladesh. Green Delta is also the 1st Insurance Company in Bangladesh to have equity partnership with International Finance Corporation (IFC) of World Bank Group. With a presence in the strategically important parts of the country, which includes 43 branches, Green Delta Insurance Company has established its prominent presence with equity participation in Delta BRAC Housing Ltd., Progressive Life Insurance Co Ltd, United Hospital Ltd. Fin Excel Ltd. and BD Venture Ltd. Green Delta Capital Ltd., Green Delta Securities Ltd.

Core Value

Customer First Always:

“We give first priority to our customers’ needs. We look at building enduring relationships even as we align a difference of opinion through the lens of supporting our customer ecosystem”

Trust:

“We believe that the key essence of teamwork is mutual trust. Trust is fundamental to our business and will guide all our internal as well as external interactions”.

Respect for Diversity:

“We believe that diversity is our key strength and we recognize that team members have varying backgrounds, competencies and ideas and constructive action results only when opinions are aligned for common good”

Business Functions

Green Delta Insurance offers different policies. These are-

      Fire Insurance

      Marine Insurance

      Motor Insurance

      Health Insurance

      Personal Accident Insurance

      Burglary Insurance

      Agriculture Insurance

Marine Insurance

Hull Insurance:

·         Concerns the insurance of ships.

·         Hull, machinery etc.

Cargo Insurance:

·         Plays an important role in domestic trade as well as international trade.

·         Provides insurance cover in respect of loss of or damage to goods during transit by –rail, -road –sea -air.

Types of Marine Insurance:

·         Time Policy

·         Voyage Policy

·         Mixed Policy

Institute Cargo Clauses (C)

·         Fire or explosion.

·         Vessel or craft being stranded, grounded, sunk or capsized.

·         Overturning or derailment of land conveyance.

·         Collision or contract of vessel, craft or conveyance with any external object other than water.

·         Discharge of cargo at a port of distress.

·         General average sacrifice.

·         Jettison

 

Institute Cargo Clause (b)

·         Provides cover under ICC (C)

·         Additional risk

a)      Earthquake, volcanic eruption or lightning.

b)      Washing overboard.

c)      Entry of sea, lake or river water into vessel.

d)      Total loss of any package lost overboard or dropped whilst loading or unloading from vessel.

Extraneous Risks

·         Can be added on payment of extra premium to ICC (B)

a)  Theft, pilferage and / or non-delivery.

b)  Fresh water and rainwater damage.

c)  Hook and / or oil damage.

d)  Heating and sweating.

e)  Damage by mud, acid and other extraneous substances.

f)   Breakage.

g)  Leakage.

h)  Busting / tearing of bags

Institute Cargo Clause (a)

·         Provide cover for all risks of loss or damage.

·         All risks mean losses which are caused by accidental circumstances.

·         Under ICC (C) and (B) the risks covered are specified.

Exclusions

·         Loss caused by willful misconduct of the insured.

·         Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear.

·         Loss caused by inherent vice or nature of the subject matter.

·         Loss caused by delay.

·         Loss arising from insolvency or financial default of owners of the vessel.

·         Loss or damage due to inadequate packing.

·         War, riot, strike, lock-out, civil commotions and terrorism.

Calculating the Premium

Green-Delta Insurance Ltd has a unique premium calculator. By this, they calculate premium after chosen plan, age, term, stipend term and yearly stipend amount.

Premium Payment

In every division of Bangladesh there are branches of Green-Delta insurance ltd. By which any policy holder can make their payment. 

They have 43 zonal offices countrywide and also head office. Policy holder can also depots their premium directly at Green-Delta insurance bank account at any branches of Pubali Bank, Trust Bank, Mercantile Bank or Southeast Bank. To make premium policy holder can use mobile banking like EFT Debit, rocket (Dutch-Bangla Bank), bkash (Brac bank), bank Asia banking agent. They can also use online payment gateway.

Claim Settlement

If any accident occurs, then a team will gather information about what amount of loss occurred. They will also see, what policy they have taken. According to there selected plans, team will measure their claim and a report will be provide to the compensate officer. After some process, claim well be ready to pay. If no accident occurs, after date of maturity the policy holder will receive his/her money from Green-Delta Insurance Ltd.

Conclusion

Every insurance company has their unique terms and conditions. Though we have seen that many companies offer same policy but their terms and conditions are different. Calculating the premium, premium payment and claim settlement differ from one to another company. Actually, that was a tremendous work for me.  

 Note that all the information has collected from the Internet.